Specialization is a business term meaning the market segment to which a particular good or service is marketed. It is
mainly defined by age, gender, geography, socio-economic grouping, or any other
combination of demographics.
It is generally studied and mapped by the organization through list and reports containing demographic information that may have an effect on the marketing of key products / services.
A product focusing on a specific target market contrasts sharply with one, following the market
strategy of mass marketing‖.
1.There are three targeting strategies an organization can adopt:-
1. Undifferentiated Marketing: - It is a standardization strategy option, where the firm offers the same product, uses the same advertising, promotional, distribution, publicity, public relations and pricing strategies to different market segment. E.g.: - Pepsi and Coca-Cola.
2. Differentiated Marketing Strategy: - It contradicts the Undifferentiated Marketing Strategy where the firm develops different products / services to suit the need of varying groups which increases their marketing and operational expenditures. E.g.: - Airline Industry.
3. Concentrated Marketing: - This is a ―focused‖ approach of the firm to target only one particular segment and create a niche market of that particular segment. In other words instead of targeting a small share of a large group, the company aims at a large share of a small group.
2.Targeting can be done by the firms by adopting a logical and systematic methodology / steps. Which are as follows: -
STEP 1: - Identify the potential buyers: - Through proper market research and market segmentation (it is the process of pulling apart the entire market as a whole and separating it into manageable disparate units based on various demographic, political, economic and social factors; it can also be customer / product / competition related segmentation).
After the process of Segmentation the next step is for the organization to decide how it is going to target these particular group(s).
STEP 2: - Select the target audiences: - The factors that influence Targeting are the Internal and External Environment. Internal environment includes the mission, vision, values and objectives of the firm; whereas; External factors are the social, cultural, economic, global, demographic, natural, task, technological, political and legal environment.
Through appropriately compiling the customers profile to decide the 4 P‗s – Product, Price, Place and Promotion and obtain the demographic, psychological, geographic and behavioral information of the buyer. Targeting is deciding the potential buyers, products to be offered and appropriately positioning each product to the segment.
STEP 3: - Proper positioning of the Product: - After developing an appropriate segmentation and target strategy; positioning strategy can be worked out effectively. Positioning enables the firm to create a positive image, gain competitive advantage and place the brand in the customers mind to enhance their goodwill and become the most preferred brand.
Positioning can be in the form of product, price, promotion, service, distribution channel, image, people, advertising, publicity, public relation or selling differentiation.
1. What is positioning?
―A product‗s position is the place the position occupies in consumers‗ minds relative to competing products.‖ Philip Kotler
The process where marketers try to create a product image or identity in the minds of their target market relative to competitive products.
It is all about placing a product / brand in the minds of the customer to occupy a stable, distinct and permanent place in their rational and conscious mind set.
1.Different Positioning Planks / Bases
Economy. Benefit. Gender .
Luxury and exclusiveness. Fashion for elite class.
Technology and value added features.
2.Criteria Of Successful Positioning
Select position concept
Design the feature that conveys position
Coordinate the marketing mix to convey position